Feed grains are also being utilized for alternative applications such as bio-fuel generation, which has diverted food supply to some extent in the U.S. Processed foods are thus being consumed to a larger extent in order to counterpoise dwindling fresh food supplies, which has driven flavors consumption to enhance taste & quality.

Beverages were the leading application segment for liquid additives with valuation of over USD 1.39 billion in 2016. Rising demand for these additives in products such as sports and energy, carbonated and alcoholic drinks to enhance taste and aroma is expected to drive segment growth.

Further key findings from the report suggest:

U.S. flavor market size is expected to reach USD 4,868.4 million by 2025, growing at a CAGR of 2.2% from 2017 to 2025

Liquid products are expected to remain the largest segment over the forecast period owing to high utilization by numerous processed food manufacturers seeking to lower production costs

Increasing demand for natural products and ingredients in food & beverage sector are anticipated to drive liquid flavor extracts demand. The segment was estimated at over USD 447 million in 2016 which is projected to grow at highest CAGR of 3.2% over the forecast period

Powdered flavors was the largest category within dry products, owing to high consumption in beer which utilizes multiple dry malts. These additives are incorporated to offset the strong aroma & taste of hops', a key ingredient in beer production.

Increasing consumption of exotic & unique textured products is also driving the demand for dry herbs & spices. The segment is anticipated to grow at over 1.7% CAGR over the forecast period.

Beverages emerged as the largest application segment in terms of revenue with over 53% volume share in 2016. The segment is also anticipated to emerge as the fastest growing application with over 2.4% CAGR from 2017 to 2025.